I will be starting a new business within the year. My main concern right now is I have a lot of prototype work needing to be done. One assembly could easily see 20+ parts. And when I have 5+ different assemblies. The number of prototype parts needed to be completed is quite high(for myself). Now That is just the final prototyping to be sure it all works. But I have assemblies with fewer components for prototyping for R&D(less then 5 parts in an assembly). Those parts will be tested and tweaked until everything works the way it should.

As I'm young and don't have a large expense account to fund it all. My plan is to prototype/patent(if applicable). And then get a loan for production. And I have a few questions.

My thinking was could I go to the shop and have the prototype parts created, for "production" costs? Now I understand no shop will quote me for 1000 parts, and then I say "I want one for that price". But would they be willing to if that "one part" was used to R&D. And subsequent versions as well until the final part is finished. And then from there. The machine shops produces the finalized part in the quantity in the 1000+ range or whatever was contracted?

Or will I be faced to pay $100,000 for prototyping and then another $400,000 for production? Instead of say...$10,000(with the above proposal) for prototyping and then $400,000 for production?

I'm just a young guy with very ambitious dreams. but I feel the only way to get an acceptable loan is if the bigging costs allowed to me test my ideas and theories. Because I don't seen any loan manager looking at what I'm doing, understanding it, let alone the fact of the market I'd be in isn't wildly viewed as anything good(large public misconceptions).

I understand that it also has to do with the complexity of the part being machined and material that will play the biggest role on costs. There's really only one part that is very complex compared to most of the other parts. And the complex part...will only need to be made ones..and the other(internal) workings parts are whats being tested and refined.

Do I have my head up my butt? Am I hoping for too much? Or would a company willing to contract the parts if in writing it states they were to help with lower costs of R&D if after...they were given a say...5 year contract producing 30+(which could grow to the hundreds) unique parts a year in the 1000+ quantity range?

Thanks for taking the time to respond. Any advice/suggestions would be appreciated.